Unknown to many, floods are the dominant natural disaster in the US. In fact, according to the FEMA Flood Map Service Center, residents living in moderate to high-risk flood zones are five times more likely to experience flooding than a fire in their homes within the next 30 years.
When homeowners are more likely than ever to need one, you would assume that most homeowner insurance policies would find flood coverage as standard. Well, they don't - this includes when the floods occurred due to a natural disaster covered under your policy.
It doesn't seem to make sense. For instance, say your roof gets damaged in a hurricane. If your homeowner's insurance policy covered this type of event, then it will likely pay out the damages caused by wind or hail. But the standard policy won't extend to any water damage caused by the hurricane. In such a scenario, you will need to purchase a flood insurance policy. So, what is a flood insurance policy, and why should you get it?
What Is a Flood Insurance Policy, and When Do You Get One?
A flood insurance policy is insurance coverage against any property loss directly caused by flooding. Depending on the provider, the covers may also extend to property outside insured buildings, such as septic systems, fences, hot tubs, swimming pools, decks and patios, and even landscaping.
When considering flooding insurance, start by evaluating if your area is a designated flood zone. You can do this using your area's regional climate and other factors specific to your exact location. An example is whether your home is on low ground or a flood plain.
Compared to most states, Texas is a high-risk flood zone, particularly the Flash Flood Alley that includes the whole of the Dallas Fort Worth (DFW) area.
The DFW area, a stretch of land extending from Central to Northern Texas, is often always facing the hardest hit by precipitation every year. Moreover, most parts of Dallas Fort Worth are poorly equipped to deal with the torrential downpours, which further increases the risk of enduring flood damages.
Depending on your specific location's risk, adding a flood policy to your individual homeowner's insurance might be a worthy investment.
Reasons Why We Need Flood Insurance Covers In Dallas
Dallas is inland and relatively far from the path of a hurricane. However, we experience heavy rains and major floods that have damaged property and taken lives. According to Flood Factor, 11,815 properties in Dallas have more than a 26% chance of getting severely affected by floods in the next 30 years.
But isn't there a network of dams, reservoirs, and levees, all designed to protect Dallas and North Texas from massive floods?
During the spring storms that occurred in 2015, the unprecedented rainfall filled up all six reservoirs, highlighting just how unpredictable the amount of downpour can get as time goes on.
Now more than ever, a flood insurance policy is an essential cover for every homeowner in Dallas.
NFIP - The National Flood Insurance Program
The Federal Emergency Management Agency (FEMA) is an official government organization that offers flood insurance cover underwritten by the federal government. You can purchase a policy through the NFIP covering your home's structure. The procedure can also protect personal belongings.
In case you suffer flood damage, the policies offer you a replacement cost to enable you to rebuild your home to what it was before the flooding. It's important to note that your personal belongings might be subjected to depreciation compared to the current cost of the items, so do your due diligence to get the details right.
Flood Insurance Policies From Private Insurers
While flood insurance is generally offered through NFIP, the policies are sold and later administered by private insurance agents and companies. Therefore, you can purchase your excess flood insurance policy to augment the policy you bought from NFIP.
If the community in your area does not work with the NFIP, you can get your flood insurance from a private company. You can also opt for a private insurer to enjoy higher coverage at higher rates.
Most policies will only take effect 30 days after signing, so it's advised to purchase flood insurance coverage before the storm season. Look for an agent near and discuss your flood insurance needs.
Private Flood Insurance vs. NFIP Insurance
Private flood insurance is generally a great alternative to NFIP insurance. Its main advantages are that:
Recent legislation changes have allowed mortgage lenders to take up and accept private insurance.
Private insurance offers multiple benefits unavailable in NFIP, such as higher limit claims.
Some private flood insurance policies have additional living expenses coverage for events where your home may be rendered inhabitable.
The main advantage of NFIP over private policies is that private insurers can find reasons to cancel flood policies while NFIP cannot revoke its policies.
Get Your Flood Insurance Policy with Thumann Agency in Dallas, TX
Schedule a visit and discuss your insurance needs with the Thumann Agency. With over 22 years of service, the agency offers superior coverage at competitive prices to the Dallas-Fort Worth community and the whole of Texas.
The family-owned agency is geared towards providing comfort to families in Dallas-Fort Worth, knowing that their property is fully insured from the damaging risk posed by floods.